When should I start transitioning the ownership of my business to the next generation?

If your plan is to pass the business down to the next generation you should start the process far enough ahead of time for your business to make a successful transition. When the plan is to pass a business on to future generations, you must not only plan for the legal transfer of ownership but also for the practical running of the business. The legal transfer of ownership can be accomplished fairly quickly; however, teaching the next generation how to run the business takes time. Moreover, there are tax advantages to transferring your legal ownership to the next generation slowly instead of all at once after you are gone.